Earls Park, New Homes in Gloucester
Help to Buy Gloucester

Help to Buy for New Homes in Gloucester

Help to Buy: Equity Loan is a Government initiative to assist people purchasing new homes in Gloucester and the whole of the UK who can afford mortgage payments but are struggling to raise a deposit.

Many people in Gloucester and throughout the UK are unable to purchase a home or move house because of the large deposits required in today’s difficult mortgage market.

Help to Buy: Equity Loan scheme is a government scheme which could make getting on to the housing ladder more accessible.  It helps first time buyers purchase a new home with as little as 5% deposit.

If you are a first time buyer and looking to purchase a property in Gloucester up to the value of £349,000 then Help to Buy: Equity Loan could be a good option for you!

The government has also announced at Budget 2021 a mortgage guarantee scheme which will increase the supply of 5% deposit mortgages for credit worthy households.  This scheme is available across the UK on properties with a purchase price of £600,000 or less, where a borrower has a deposit of 5%.

The mortgage guarantee scheme is explained in more detail here.

New Homes at Earls Park, Gloucester

What is Help to Buy: Equity Loan (2021-2023)?

Help to Buy: Equity Loan is only available for first time buyers purchasing new build homes.

Under the scheme

  • Government provides equity loan of 20%
  • You arrange a mortgage for 75%
  • Meaning your deposit is 5%

You won’t be charged loan fees or interest on the 20% loan for the first five years of owning your home, but interest will be payable on it from year 6.

If the home in the example above sold for £210,000, you’d get £168,000 (80%, from you mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money. Many new homes developers advertise plots that are eligible for Help to Buy: Equity Loan in Gloucester. Here is a list of the current new homes for sale in Gloucester.

Am I eligible for Help to Buy: Equity Loan (2021 – 2023)?

To find out if you are eligible you simply need to contact a mortgage advisor or mortgage lender that is participating in the scheme.  However, use the quick checklist below to see if you could be eligible for the scheme:

  • Buyers need a minimum of 5% deposit
  • Available on new build property in Gloucester up to the value of £349,000
  • You and anyone you’re buying a home with must:
    • not own a a home or residential land now or in the past in the Uk or abroad.
    • not have any form of sharia mortgage finance.
  • Available for properties in the UK
  • Borrowing from a participating mortgage lender.

Before you get started, make sure you have funds to pay for:

  • A reservation fee to reserve your home (up to £500).
  • A 5% deposit on exchange of contracts.
  • Other fees on completion (stamp duty, legal fees, mortgage fees).

Here’s a full guide on the Help to Buy: Equity Loan (2021-2023)

What has happened to the previous Help to Buy scheme?

Applications for Help to Buy: Equity Loan (2013-2021) ended on 15th December 2020.

However the completion deadline for those purchasing with the scheme has been extended until May 31st 2021.  The extension has been made to help with problems caused by the current coronavirus pandemic.

If you have any questions regarding Help to Buy or would like to find out about participating developments then please Michael Tuck New Homes in Gloucester

Terms and Conditions for Help to Buy: Equity Loan (2021-2023)

Eligible homebuyers can borrow 5% to 20% (40% in London) of the market value of a newly built home. Regional property price limits will apply. The equity loan is interest free for 5 years; monthly interest payments start at 1.75% and rise each year in April by the Consumer Price Index (CPI) plus 2%. Pay a £1 monthly management fee from the start. Repay your equity loan at the end of your mortgage or equity loan term, when you sell your home or any time before. The lender, Homes England, secures the equity loan as a second charge on your home. Help to Buy is subject to eligibility, terms and conditions: www.OwnYourHome.gov.uk

Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan or other loans secured against it.

 

Want to talk to us about the Help to Buy Scheme?

Why not speak to our friendly New Homes team who can tell you how the scheme works and which new homes developments in Gloucester are registered with Help to Buy!
Land and New Homes
01452 726443
Help to Buy

*Eligible applicants will be offered an equity loan up to a maximum of 20% of the purchase price (based on the open market value). 

Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required.  For the first five years there is no fixed fee charged on the equity component. 

At the start of year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%. 

The equity loan is provided by the HCA and held as a second charge.  Terms and conditions apply and full details will be provided on request. 

This offer is subject to status and only available on selected properties in England only.  It is not offered with any other promotion. 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Emma Haggett, Michael Tuck New Homes, Gloucester

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I cannot recommend Michael Tuck Estate Agents enough.

They were so professional and so prompt with their communication. In particular we would like to mention Charlie for his regular updates and extremely helpful service in the sale of my mothers house. We were in a particularly long chain, and he went over and above to assist us in the communications between the buyers and sellers in order for our chain to proceed. He even contacted Solicitors and helped progress the exchange.

“We are certain if it wasn’t for him we wouldn’t have sold our house! We cannot thank him and his team enough.”

Kelly Durkin

Miles has gone above and beyond to ensure buying our first house has been a smooth process. He has offered clarification and reassurance at all steps of the journey, making us feel like valued clients.

“We would recommend Michael Tuck Estate Agents.”

Hollie Blunt

Michael Tuck New Homes in Gloucester assisted us selling three phases of our development in Kingsway, Gloucester.

“All of the staff were very professional and knowledgeable sales people who represented our company as if it were their own.”

If we were to need help selling our homes in the Gloucester ara again they would be the first phone call i’d make.

Stephen Holbrook. Abbey Homes

Tony and John, Abbeymead branch, supported us during very difficult circumstances (and we don’t just mean Covid!)

The same applies to other staff when answering queries etc.

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David Duncan

I have been a customer of Michael Tuck Lettings in Abbeymead for coming up to 2 years now.

I would like to highlight Kurt and James for there forever ending support and excellent communication. Their joint efforts have filled me with confidence in the ability to keep my family safe in a home we love.

No matter the complexity or need they are always on hand to support and come to some form of reasonable resolution.

For this reason I would recommend Michael Tuck to all my family and friends and will hopefully continue to stay a customer of Michaels Tucks until I purchase my own home. Thank you

“Being a contact centre manager I know how important customer service is and I must say that Michael Tuck has not disappointed.”

Jay Preece

Miles and the team have been brilliant from start to finish during the sale of our house.

Miles especially went above and beyond with sales chasing when I think most other people would have probably given up! Really happy with the service.

“Such a friendly and professional team and nothing was too much trouble.”

Anna England

I was recommended Michael Tuck Estate Agents in Abbeymead by a friend, thank you friend!

I would like to say a big thank you and well done to the team who are very friendly, helpful and have taken the strain out of what was a fairly long house sale.

Special thanks go to Chloe and Tony for their positivity and Chloe thank you for your good humour which lifted me during the long process!

“I would highly recommend them for a first class service”

Jane West

Michael Tuck Lettings in Abbeymead have been a fantastic letting agents looking after our house for the past 17 years.

We have recently sold the house with the sales department.  Kurt has looked after us incredibly well during the 17 years of lettings and Tony, Andy and Chloe have made the selling very easy. Thank you

“The staff are professional, approachable and easy to contact.”

Claire Rawlinson

I have recently bought and sold through the Gloucester branches and cannot praise Miles and the team highly enough.

In what has been a very testing time for the industry, Miles and all the staff have worked tirelessly in my purchase and even more so my sale.

Thoroughly recommend Tucks every time. Special thanks to Otis. Thank you guys it’s been an absolute pleasure.

“Their drive and communication skills have been amazing.”

David Lichtenstein

As a both a private individual and as property developer I have been using Michael Tuck New Homes in Gloucester to sell my properties for the last ten years.

During that time they have provided a consistently first class service. In particular ‘Richard’ has always been willing to go above and beyond what is required by offering highly skilled sales negotiation techniques to obtain the best price possible in various and sometimes challenging market conditions.

I special mention to a newer member of the team ‘Chloe’ who I had numerous conversations with in my latest sale, she was always friendly and approachable to myself and I am told the buyers and I am certain this would of helped, along with chasing the solicitors to bring my latest sale to a satisfactory conclusion.

Ben Preston